The Indian labor market consists of 430 million workers with low unemployment rates but high levels of underemployment, especially in rural areas. Major issues include child labor, lack of skilled labor, inequity in wages, and restrictive labor regulations that affect job growth. There is a need for comprehensive labor policies to promote sustainable and inclusive development as the country approaches becoming the world's largest labor force by 2030.

1. “Labour is not an
issue in the Indian
job market”
Is it true or just a myth?
SAJNA FATHIMA, SMBS , MGU

2. Indian Labour market scenario
 Consists of 430 million workers in 2004-05, growing
2% annually, with a stable worker-population ratio of
40%.
 Lower level of women’s participation in workforce
(28%) – perhaps an underestimate.
 Low level of open unemployment (3.1%) – high level of
disguised unemployment (or under-employment),
mostly in rural areas and in agriculture.
 Child labour’s share in workforce declining – yet quite
large in absolute numbers, at 13 million in 2001.
SAJNA FATHIMA, SMBS , MGU

3. Real scenario
 For almost 460 million working-age Indians — who are
poised to become the world’s largest labour force by
2030 — huge employment deficits still remain. Most of
their jobs are casual with low productivity.
 Though, opportunities for regular formal employment are
increasing, the benefits of these gains are enjoyed by
only a minority of Indians, and reveal a widening
inequality and the fragility of India’s social protection.
SAJNA FATHIMA, SMBS , MGU

4. Major issues in Indian Labour
market
 Child labour
 Lack of skilled labour
 Lack of equity in payments
 Trade Unions
 Labour market regulations
SAJNA FATHIMA, SMBS , MGU

5. Labour market structure
 Labour market consists of 3 sectors.
 Rural workers constitute over 60% of the workforce.
 Organized sector employs 8% of the workforce,
producing 40% of GDP. But its employment share
declining.
 Thus, urban informal sector is the growing sector –
represents the residual.
SAJNA FATHIMA, SMBS , MGU

6. Morgan Stanley’s research results
 India’s track record in terms of creating productive jobs
has been slow so far.
 One of the key issues stifling productive job growth is
labour market regulations in the country.
 In addition, multiplicity of laws, rigidities in the system
and trade unions play a major role in holding back India's
labour market environment.
SAJNA FATHIMA, SMBS , MGU

7. India Labour and Employment
2014 Report
 Takes stock of India's labour markets, examining the
progress reforms as well as deep challenges ahead.
Its central message: India needs a
responsive, fair, and comprehensive
labour and employment policy for
sustainable and inclusive
development.
SAJNA FATHIMA, SMBS , MGU

8. Thank you
SAJNA FATHIMA, SMBS , MGU